Older Americans Face Climbing Long-Term Care Cost in
Nursing Homes, Assisted Living
Private room in nursing home now averages $85,775
per year; home health aide cost shows smallest increase
April 20, 2011 Senior citizens and baby boomers
are facing a continued increase in the cost of long-term care (LTC) in
the U.S., although the increase this year is less than cost increases
for other goods and services. Still, the John Hancock survey says
the annual cost of a private room in a nursing home has climbed to
$85,775.
The national average annual cost of other LTC is;
$75,555 for a semi-private room in a nursing home and $39,240 for an
assisted living facility. The average cost of care received at home is
approximately $20 per hour.
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Read more on
Money, Insurance &
Investments |
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John Hancock Financial today released its 2011 cost
of care study that was conducted by by LifePlans Inc. The company
surveyed more than 11,000 providers, including nursing homes, assisted
living facilities, and home health care agencies, in key cities across
the country.
To understand how long-term care costs are trending
over time, John Hancock calculated a 9-year average based on a
comparison of data gathered from providers across the country for John
Hancock's 2002, 2005, 2008, and 2011 Cost of Care Surveys.
These 9-year
average annual increases in the cost of care in various settings,
closely track the long-term average annual rate of inflation, which is
4.1%.(1)
Specifically:
● The 2011 average cost of a private nursing
home room ($235 a day/ $85,775 annually) has risen an average 3.5
percent per year
● The 2011 average cost of a semi-private
nursing home room ($207 a day/ $75,555 annually) has risen an
average 3.2 percent per year
● The 2011 average cost for a month in an
assisted living facility ($3,270 a month/ $39,240 annually) has
risen an average 3.4 percent per year
● The 2011 average cost for a home health
aide ($20 hourly/$37,440 annually) has risen an average 1.3 percent
per year
"The ongoing effect of the recession on the nest
eggs of so many individuals underscores the importance of planning for
the future," said Marianne Harrison, President of John Hancock LTC.
"John Hancock believes that long-term care
insurance is an integral component of any prudent financial plan. Our
cost of care studies are intended to help people better understand and
prepare for their future long-term care needs."
About John Hancock Financial and Manulife Financial
Corporation
John Hancock Financial is a unit of Manulife
Financial Corporation
www.manulife.com, a leading Canadian-based financial services group
serving millions of customers in 22 countries and territories worldwide.
The John Hancock unit
www.johnhancock.com, through its insurance companies, comprises one
of the largest life insurers in the United States.
